BAT(BTI) The Motley Fool·2025-02-13 23:01Core Viewpoint - British American Tobacco (BAT) experienced a significant stock sell-off, closing down 7.3% despite overall market gains, following the release of its preliminary full-year results for 2024 which showed better-than-expected earnings but disappointing sales figures and cautious guidance for the future [1][2]. Financial Performance - BAT reported an adjusted profit of 362.5 British pounds per share on sales of 25.87 billion pounds, slightly above analyst expectations for earnings but below sales forecasts [2]. - Overall revenue increased by 1.3% year over year, driven by an 8.9% sales increase in the new category segment, with smokeless products accounting for 17.5% of total revenue [3]. - The revenue from cigarettes and other combustible products rose by 0.1% year over year, supported by a 5.3% price increase that offset a 5.2% decline in unit volumes [3]. Dividend and Shareholder Returns - The company announced a 2% increase in its dividend and introduced a new stock buyback program, indicating a commitment to returning value to shareholders despite some challenges [4]. Future Guidance - For the current year, BAT is guiding for revenue growth of just 1% and adjusted operating profit growth between 1.5% and 2.5%, citing new taxes in Bangladesh and Australia as potential headwinds [5]. - Looking ahead to 2026, the company anticipates sales growth between 3% and 5% and adjusted operating profit growth between 4% and 6% [5]. Market Reaction - Despite the stock's significant decline, the overall financial report was not deemed overly negative, with sustainable dividends and encouraging growth in the smokeless segment suggesting potential for long-term investors [6].